Download 2004 Gazette Vol. 10 No2

OFFICIAL GAZETTE
of the
COMMON MARKET FOR EASTERN
AND SOUTHERN AFRICA
Vol. 10 No. 2
Published by Order
of the Council and the Authority
December 2004
TABLE OF CONTENTS
I.
LEGAL AND GENERAL NOTICES
(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
Trade Liberalisation
COMESA Customs Union
Trade Related Issues
Transport and Communications
Industry and Energy
Monetary Affairs
Agriculture
Economic and Social Development
By Order of the Council
Mr. Erastus J.O. Mwencha, MBS
Secretary-General
COMESA
1
IT IS HEREBY NOTIFIED that the COMESA Council of Ministers, at its
Eighteenth Meeting held on 7th December, 2004 issued the following Legal
and General Notices:
I.
TRADE LIBERALISATION
(a)
Multilateral Trade Issues – WTO and EPAs
WTO Negotiations: the Doha Agenda
Decision
39.
Council decided that a meeting of Ministers dealing with trade issues
meet in April or May 2005 to start to develop regional strategies and positions in
preparation for the next WTO Ministerial Meeting scheduled to be held in Hong
Kong in December 2005. These positions should be fed into the Africa Group,
and possibly the LDC and ACP Groups,
II.
COMESA CUSTOMS UNION
(a)
Common External Tariff (CET)
Decision
40.
The Council decided that Member States should work towards
harmonising their external tariff as a transition strategy towards realising the
COMESA CET as follows:
Category
Raw materials
Capital goods
Intermediate goods
Final goods
(b)
Range for tariff
harmonization
0% to 5%
0% to 5%
10 to 15%
(See 61 b of Doc.
COM/TCM/6 )
20 to 40%
CET target rate
0%
0%
Not agreed (but see country
preferences)
Not agreed (but see country
preferences)
COMESA Customs Union Roadmap
Decision
41.
The Council adopted the following programme of action:
Action
Completion of National studies and Consultations
on CET rates
National consultations on convergence timetable
to CET ranges and target rates
Submission of results and proposals to Secretariat
for circulation to Member States
Third Technical workshop on CET
Ratification of COMESA fund
Study on alternative sources of revenue
42.
The Council decided that:
Timetable
28 February 2005
28 February 2005
14 March 2005
April 2005
30th June 2005
Not given
2
(i)
the Secretariat should undertake a trade flow analysis and
Member States should complete national consultations/studies by
28 February 2005;
(ii)
all countries should, if possible, respect the deadlines agreed by
the Trade and Customs Committee at their last meeting but that if
this was not possible, countries should have completed national
studies and consultations by end February 2005, at the latest, so
as to allow time to prepare for the third technical workshop on
CET in April 2005; and
(iii)
A special meeting of Ministers of Finance be convened prior the
next Summit to consider the CET.
III.
TRADE RELATED ISSUES
(a)
Competition Policy
Decision
43.
Council adopted the Competition Policy and Regulations attached hereto
as Regulations No. 1 of 2004.
VI.
TRANSPORT AND COMMUNICATIONS
(a)
Draft Regulations for Competition of Air Transport Services within
COMESA, EAC and SADC
Decision
44.
Council adopted Regulations for Competition of Air Transport Services
within COMESA, EAC and SADC which are attached hereto as Regulations No.
2 of 2004.
(b)
Funding Arrangements for Air Transport Regulatory Board
Decision
45.
Council decided that Member States shall meet the cost of attending
meetings for the Board Members while the Secretariat shall support the
activities of the Board and cover the meeting expenses.
(c)
The COMESA CNS/ATM Systems
Decisions
46.
Council decided that:
(i)
The COMESA Regional CNS/ATM Systems project should be
implemented in collaboration with other sub-regional groupings
such as SADC, EAC, ASECNA and WMO;
3
(d)
(ii)
Member
States shall
meet
the
cost
of
attending meetings for the Working Group members while the
Secretariat shall support the activities of the Working Group and
cover the meeting expenses;
(iii)
Member States should respond to questionnaires sent to them by
the Working group;
(iv)
Member States should establish National CNS/ATM Committees
which should include meteorological experts to co-ordinate the
planning and implementation of CNS/ATM systems; and
(v)
A meeting of the CNS/ATM Co-ordinating Committee and other
regional CNS/ATM Systems initiatives be convened to agree on
the way forward on the development of the regional CNS/ATM
Systems Project in conjunction with ICAO.
The COMESA COSCAP Project
Decision
47.
Council directed the Secretariat and the seven member States continue
to refine the project document in collaboration with ICAO.
(e)
Road Transport
Decisions
48.
(f)
The Council:
(i)
Urged member States to implement the transit facilitation
instruments in order for the region to derive the full benefits from
the instruments; and
(ii)
Directed the Secretariat to co-ordinate with EAC, IGAD and SADC
in order to adopt a harmonized set of transit facilitation
instruments throughout Eastern and Southern Africa.
Third Party Motor Vehicle Insurance (Yellow Card) Scheme
Decisions
49.
(g)
The Council decided that:
i)
Member States that have not ratified the RCBG Agreement should
do so without further delay.
ii)
Member States who have ratified the Agreement should facilitate
the establishment of the National Surety on the RCBG scheme;
and
iii)
The National Surety should sign the Inter-Surety on the
implementation of the RCBG scheme.
Road Infrastructure
4
Decision
50.
The Council urged member States to provide the Secretariat with regular
reports on the status of implementation of major road construction and
rehabilitation projects.
(h)
Overload Control
Decisions
51.
(i)
The Council:
(i)
urged the member States to attend the Regional workshop on
overload control and urged member States to facilitate the
implementation of control in their countries;
(ii)
urged member States to take overload control programme as a
priority; and
(iii)
requested Secretariat to co-ordinate with EAC-SADC-IGAD to
harmonize axle load control limits
Regulation of the transport sector
Decisions
52.
(j)
The Council decided that:
(i)
The Secretariat should prepare a paper on Regional shipping
policy and regulatory framework; and
(ii)
The Secretariat should co-ordinate the development of regional
programmes for implementation of maritime safety, security and
search and rescue.
Interline Co-operation Arrangements
Decision
53.
The Council:
(i)
Directed the Secretariat to prepare a paper on a regional strategy
indicating the modalities of co-operation among regional shipping
lines;
(ii)
Urged regional shipping lines to co-operate through alliances,
route networks, acquisition and sharing vessels and equipment,
and exchange of market information; and
(iii)
Urged regional shipping lines to establish an African Association
of Shipping Lines to enhance regional co-operation and
development of the shipping industry.
5
(k)
Capacity building
Decisions
54.
The Council:
(i)
Directed the Secretariat to liaise with the member States and
Egyptian Government on the offer;
(ii)
Directed the Secretariat to prepare a list of all training institutions
and facilities in the region, detailing types of courses offered and
capacities, for both categories of training and distribute to member
states;
(iii)
Directed the Secretariat to prepare a regional training co-operation
framework to enable the trainees to undertake their sea-time
training on board the regional shipping lines;
(iv)
Directed the Secretariat to prepare a model institutional framework
for industry associations detailing possible roles, organization, and
institutional arrangements and funding for the Shippers’ councils;
(v)
Urged member States with shipping liners to offer slots for seatime training for seafarers; and
(vi)
Urged Member States to facilitate the establishment of industry
associations and assign to industry associations a role in the
training of personnel and setting up a harmonized criteria for
licensing operators.
V.
COMMUNICATIONS
(a)
COMTEL Project
Decisions
55.
(b)
The Council:
(i)
Urged member States to support the implementation of COMTEL
and facilitate the due diligence exercise;
(ii)
Urged NTOs to participate in the COMTEL project and co-operate
and facilitate the due diligence exercise by the SEP; and
(iii)
Urged that NTOs to submit information on their networks including
traffic and annual reports and respond to questionnaires sent to
them by the SEP not later than 15th November 2004.
Harmonization of ICT Policy and Regulatory Framework
Decisions
56.
The Council:
6
(c)
(i)
Directed the Secretariat
to circulate the
Policy, Model Bill and Policy Guidelines to member States;
ICT
(ii)
Urged regulatory authorities that were not yet members of
ARICEA to join as soon as possible;
(iii)
Urged regulators to participate in peer to peer arrangements with
other regulatory authorities;
(iv)
Encouraged local universities and other academic institutions to
adopt and adapt the NetTel@Africa modules to national needs
and deliver the courses;
(v)
Urged member States to adopt, adapt and implement the ICT
policy guidelines; and
(vi)
Urged member States to form national ICT Committees to
facilitate the implementation of the ICT policy.
High Level ICT Policy Forum Report
Decision
57.
Council endorsed the recommendations of the High Level ICT Policy
Forum and directed the Secretariat to expedite their implementation though
the Work Programme
V.
DEVELOPMENT OF PHYSICAL INFRASTRUCTURE
(a)
COMESA Five Year Priority Projects
Decision
58.
Council urged member States to provide regular updates of their national
projects to the Secretariat.
VI.
INDUSTRY AND ENERGY
(A)
INDUSTRY
(a)
Status of AGOA in COMESA
Decision
59.
In view of the above achievements and the current need for ALINC to go
regional and due to the current funding constraints, Council decided that the
AGOA ALINC programme be mainstreamed in general COMESA programmes.
(b)
The COMESA Common Investment Area (CCIA)
Decisions
60.
Council decided that:
7
(c)
(i)
The Secretariat in liaison
with UNCTAD should
distribute CD-ROMs containing information on BITs to those
Member States who need them; and
(ii)
The Secretariat should circulate the CCIA Roadmap as approved
by Council in Kampala in June 2004.
Status Reports by Member States on the national studies on
coherence of CCIA and commitments of Member States made under
other Agreements
Decisions
61.
(c)
Council decided that:
(i)
Member States that have not submitted their progress report
should forward to the Secretariat their progress report by 15th
December 2004;
(ii)
The matrix should be revised to add columns showing
Agreements that have been ratified, signed and not ratified and
those under negotiations;
(iii)
The Secretariat should assist the remaining countries undertake
the Distant Learning Course; and
(iv)
All outstanding Technical Working Group work in preparation for
the first round of negotiations should be completed by 31st
January 2005.
Draft Negotiations of the Investment Framework Agreement
Decisions
62.
Council decided that:
(i)
The proposed date of the first round of negotiations should be
moved to March 2005;
(ii)
The timetable should be flexible and should be changed based on
the findings of the coherence studies by Member States;
(iii)
Secretariat should request UNCTAD to work with member States
to assist them to attain best practices, especially in the investment
environment ;
(iv)
Member States should conclude the required coherence study by
end-January 2005;
(v)
Countries should determine the numbers of people to send to
negotiations but there is need for consistency in the attendance;
and;
(vi)
The Draft Negotiation Guidelines and Mandate be adopted subject
to comments and be submitted to Council.
8
Decisions
63.
(d)
Council decided that:
(i)
Member States should send written comments on the Agreement
to the Secretariat by 14th January 2005;
(ii)
The Secretariat should circulate these comments to member
States by 31st January 2005; and
(iii)
All the comments from Member States will form part of the
documentation for negotiation.
Regional Investment Agency (RIA)
Decisions
64.
(e)
Council decided that:
(i)
Member States should submit their comments to the Secretariat
on the Draft Charter by 31 January 2005;
(ii)
The draft budget for the RIA is recommended for approval; and
(iii)
The Draft Agreement on the CCIA.; and
(iv)
The Draft Agreement on the CCIA should make reference to the
RIA since the Agency would implement some of the provisions of
the Agreement.
Firm Strategies under Trade Liberalisation
Decision
65.
Council decided that the COMESA Secretariat should further develop
this concept of export-led strategy into a detailed project proposal for
consideration at its next meeting.
VIII.
MONETARY AFFAIRS
(a)
Regional Payment and Settlement System (REPSS)
Decisions
66.
Council decided that:
(i)
The resources from the PTA Travellers Cheques Fund be
deposited into an account held by the Committee of Central Bank
Governors;
(ii)
Further work according to the Action Plan be carried out to make
REPSS Operational in the year 2005;
9
(iii)
The Bureau of Governors
should
oversee
the
above process and guide REPSS through to its operational stage;
and
(iv)
The UAPTA Travellers Cheques Fund be used with the approval
of the Committee of Central Bank Governors.
(b)
Macro-economic
Mechanism
for COMESA
Convergence
Criteria
and
Exchange
Rate
Decision
67.
Council endorsed the decisions of Finance Ministers on the following
revised macro-economic convergence criteria:
Stage 1 (Year 2005-2010)
Primary Criteria
(i)
Overall budget deficit/GDP ratio (excluding grants) of not more
than 5%;
(ii)
Annual average inflation rate not exceeding 5%;
(iii)
Minimise the central bank financing of the budget towards 0%;
(iv)
target;
(v)
External reserves of equal to or more than 4 months of imports of;
and
(vi)
goods and non-factor services.
Secondary Criteria
(i)
(ii)
Achievement and maintenance of stable real exchange rates;
Achievement and maintenance of market based positive real
interest rates;
(iii)
Achievement of sustainable real growth rate of real GDP of not
less than 7.0%;
(iv)
Sustained pursuit of debt reduction initiative on domestic and
foreign debt. i.e. reduction of total debt as a ratio of GDP to a
sustainable level;
(v)
Total domestic revenue to GDP ratio of not less than 20%;
(vi)
Reduction of current account deficit (excluding grants) as a % of
GDP to sustainable level;
(vii)
Achievement and maintenance of domestic investment rate of at
least 20%;
10
(viii)
Implementation of the 25
Core Principles of Bank
Supervision and Regulation based on agreed Action Plan for
Harmonization of Bank Supervision for the COMESA region; and
(ix)
Adherence to the Core Principles for Systematically Important
Payments Systems, by modernizing the payment and settlements
system.
Stage Two (2011-2015)
Primary Criteria
(i)
Overall budget deficit/GDP ratio (excluding grants) not exceeding
4%;
(ii)
Annual average inflation rate of not more than 3%;
(iii)
Elimination of the central bank financing of the budget deficit; and
(iv)
External reserves of equal to or more than 5 months of imports of
goods and services.
Secondary Criteria
(i)
Achievement and maintenance of stable real exchange rates;
(ii)
Achievement and maintenance of market based positive real
interest rates;
(iii)
Achievement of sustainable real growth rate of real GDP of not
less than 7.0%;
(iv)
Sustained pursuit of debt reduction initiative on domestic and
foreign debt. i.e. reduction of total debt as a ratio of GDP to a
sustainable level;
(v)
Total domestic revenue of government to GDP ratio of at least
20%;
(vi)
Maintenance of sustainable level of current account deficit
(excluding grants) as % of GDP;
(vii)
Maintenance of domestic investment rate of at least 20%; and
(viii)
Gradual liberalization of the capital account.
Stage III. (2016-2018)
Primary Criteria
(i)
Overall budget deficit/GDP ratio (excluding grants) not exceeding
3%;
(ii)
Annual average inflation rate not exceeding 3%;
(iii)
Elimination of central bank financing of the budget deficit; and
11
(iv)
External
reserves
of
equal to or more than 6
months of imports of goods and services.
Secondary Criteria
(i)
Maintenance of a stable real exchange rates;
(ii)
(iii)
Maintenance of market based positive real interest rates;
Maintenance of high and sustainable real rate of growth of GDP of
not less than 7.0%;
(iv)
(v)
Sustained pursuit of debt reduction initiative on domestic and
foreign debt i.e. reduction of total public debt as a ratio of GDP to
a sustainable levels;
(vi)
Total domestic government revenue to GDP ratio of at least 20%;
(vii)
(viii)
Maintenance of sustainable level of current account deficit
(excluding grants) as % of GDP;
(ix)
Maintenance of domestic investment rate of at least 20%; and
(x)
Full liberalization of the capital account.
68.
Council decided that implementation of the monetary integration
programme should be accelerated to achieve monetary union by 2018, in order
to be consistent with the target date of the African Monetary Union;
69.
In order to enhance implementation of the convergence criteria, Council
also decided that:
(i)
In view of the varying degrees of macro-economic performance
and external exposures of Member States, escape clauses should
be allowed in the form of bands to enable countries to adjust to
external shocks;
(ii)
Harmonization of the concepts and methodologies as well as
statistical frameworks would be critical to the success of the
COMESA Monetary Harmonization Programme. In this regard,
COMESA member countries should participate in seminars and
workshop that would be organized by the African Union in
collaboration with the Association of African Central Banks
(AACB);
(iii)
Member countries should continue to prepare detailed reports
annually on their macro-economic performance and present them
to the Monetary Cooperation meetings of COMESA every year.
The reports should include reasons for not achieving some of the
convergence criteria and the measures they will put in place to
achieve them;
(iv)
COMESA Secretariat should present a comprehensive progress
report at the end of each stage assessing the achievement of
macro-economic convergence; and
12
(v)
COMESA
should organize seminars on monetary
policy, in order to enable member countries to implement
appropriate monetary policy mix that minimizes interest rate and
exchange rates volatilities.
70.
With regard to the successful implementation of currency convertibility
arrangement, Council decided that:
(i)
Intra-regional trade should be significant and not highly skewed in
favour of a few countries. This promotes equitable demand for all
currencies;
(ii)
Measures to promote intra-regional trade should be enhanced;
(iii)
In order to give trust to the arrangement of currency convertibility,
all authorised foreign exchange dealers, except for foreign
exchange bureaux, should be encouraged to have sufficient
correspondent relationships;
(iv)
Market determined exchange rates and relatively open capital
accounts should be put in place in all member States since they
are critical to the success of currency convertibility;
(v)
Sufficient level of public awareness in the region regarding the
need for the public to appreciate and understand the underlying
advantages of having their currencies to be convertible;
(vi)
Member states should take necessary measures to ensure
stability of their exchange rates;
(vii)
The payment and settlement systems should be modernised and
made efficient; and
(viii) Member countries with geographic proximity and significant level
of trade should be encouraged to introduce currency convertibility
between their currencies.
71.
With regard to the Exchange Rate Union, Council decided that the
Secretariat should request the European Central Bank for technical assistance
to undertake the study on the Exchange Rate union which would be submitted
to the Task Force for review.
(c)
COMESA Export-Led Strategy
Decision
72.
Council decided that the COMESA Secretariat should further develop
this concept of export-led strategy into a detailed project proposal for
consideration at its next meeting.
(d)
Study on Poverty Reduction Strategies in Eastern and Southern
Africa
13
Decision
73.
Council agreed that a final paper incorporating the views expressed in
the above paragraph be prepared and the Secretariat should thereafter
convene a seminar on poverty reduction in accordance with the decision of the
Sixth Meeting of Ministers of Finance held in Nairobi, Kenya in November 2003.
IX.
AGRICULTURE
(a)
Food Security and Poverty Eradication
Decisions
74.
(b)
Council decided that:
(i)
COMESA should enhance food security through promotion of
trade between surplus and deficit areas of the region without any
non-tariff barriers and development of a sustainable Market
Information System. This should include taking measures to
improve the efficiency of the region’s transport system so as to
reduce the cost of moving agricultural produce in the region;
(ii)
COMESA should set up a revolving fund which will enable
member States finance the purchasing of main food crops from
farmers and thereby prevent the commodities from going to waste
due to lack of markets. In administering the fund, the economic
realities of individual countries should be taken into account;
(iii)
Member States should set up national strategic food reserves and
should share intelligence on their food reserve positions, so as to
facilitate advance planning to better manage deficits and food
emergencies, with the full involvement and participation of the
private sector;
(iv)
Governments should give priority to agriculture and put in place
sound agricultural policies such as appropriate land tenure
systems, an efficient transport system, timely provision of inputs,
accessible and affordable financing, promoting irrigation with the
aim of up-scaling production and marketing of agricultural
commodities so as to increase the food supply, avert hunger and
reduce poverty in the short, medium and long term. This should
be done in an integrated manner;
(v)
The COMESA region should improve and harmonize Food Quality
and Safety Standards including common certification; and
(vi)
COMESA member States should also pay particular attention to
traditional food crops, such as cassava, sorghum and millet.
The Agricultural Marketing Promotion and Regional Integration
Project (AfDB funded)
Decisions
75.
Council decided as that:
14
(c)
(i)
Member States should cooperate with the COMESA Secretariat to
implement the AfDB financed project on Agricultural Marketing
and Regional Integration and fulfill their obligations as provided for
in the Financing Agreement with the ADB; and
(ii)
Member States should harmonize their SPS regulations and learn
from other countries’ experiences and should seek to develop
well-functioning SPS measures that are not prohibitive to free
trade in agricultural commodities and build capacity on Pest Risk
Analysis.
Irrigation Development
Decision
76.
Council decided that member States who require assistance to harness
their irrigation potential and who had not yet done so should submit their
requests to the COMESA Secretariat.
(d)
Rice Production Development
Decisions
77.
(e)
Council decided as follows:
(i)
Member States which possess comparative advantage in rice
production should up scale the production of the commodity; and
(ii)
Countries that are rice producing or that have the potential to
produce rice are urged to take into account the approaches
proposed in the study as they devise their own strategies to
enhance rice production in their respective countries and that the
COMESA Secretariat should avail the study to all member States.
Livestock Promotion and Disease Control
Decisions
78.
Council decided that:
(i)
member States should improve feeding and breeding strategies to
increase the performance of local livestock breeds;
(ii)
member States should support livestock production based on local
resources, fodder conservation and integrated farming systems
and increase access to appropriate quality community based
animal health services and simple preventive measures such as
vaccinations and improved hygiene;
(iii)
COMESA should adopt a regional approach to combating
livestock diseases such as anthrax and food and mouth; and
(iv)
member States are encouraged to promote value addition in meat,
milk and hides and skins.
15
(f)
Fisheries Development
Decisions
79.
(g)
Council decided that:
(i)
Member States should take measures to implement the Action
Plan for sustainable development of fisheries in the COMESA
region as outlined above;
(ii)
Member States should play their role effectively in boosting fish
production, alleviation of malnutrition and promoting food selfsufficiency; and
(iii)
A regional approach should be adopted in mobilising resources,
and in initiating and implementing activities that are beneficial to
the region’s fishing industry.
Biotechnology and Biosafety Issues in Agricultural Development
Decisions
80.
(h)
Council decided that:
(i)
Member States are requested to take note of the on-going
collaboration between COMESA and ASARECA to develop a
regionally harmonised policy on biotechnology and biosafety;
(ii)
Member States are urged to support the work COMESA is
undertaking with ASARECA by providing the necessary inputs and
materials to ensure that the proposed regional policy being
developed by COMESA takes into account the positions of
individual countries; and
(iii)
Member States are urged to consult widely with industry leaders,
civic leaders, and the general population as they seek to come up
with their own national positions on GMOs and the whole question
of biotechnology and biosafety, including effective dissemination
of quality and balanced information.
Financing Agriculture and Rural Development
Decisions
81.
Council decided that:
(i)
Member States should implement the African Union (AU)
commitment by Heads of States and Governments to allocate at
least 10% of the public budget to agriculture within five years;
(ii)
Member States should, in partnership with the private sector,
establish specialised agricultural financial institutions and banks
as well as lower the cost of capital through constant and
16
continuous review of
order to increase productivity; and
(iii)
(i)
agricultural policies in
Member States should promote establishment of sustainable
agricultural revolving funds as well as build capacity in the
management of agricultural finance.
Report of the Regional Workshop on Strengthening Agricultural
Marketing Information Systems
Decisions
82.
Council decided that:
(i)
A Regional MIS to be based at the COMESA Secretariat should
be set up. Its implementation should be guided by a Business
Plan and clear Road Map, taking into account National MIS and
existing regional systems as well as the need to ensure long-term
viability and sustainability; and
(ii)
COMESA member States are urged to make, the provision of
information a statutory requirement, i.e. put in place regulations
which ensure information is put at the disposal of the proposed
COMESA wide Food Security and Agricultural Marketing
Information System.
(j)
Expanding
Commodities
Market
Opportunities
for
Trade
in
Agricultural
Maize
Decisions
83.
Council decided that:
(i)
Member States should adopt and endorse the “Maize without
Borders’ Strategy;
(ii)
In times of deficits, Member States should endeavour to source
maize from the region first, before resorting to importation from
outside the region;
(iii)
Member States should set up a Public/Private sector Task Force
to initiate the establishment of the regional maize balance sheet
as a matter of urgency. This Task Force should also introduce a
regionally co-ordinated “trigger mechanism” to facilitate effective
management of import/export bans in the short-term with a view to
their complete elimination in the long-term; and
(iv)
In times of deficits, Member States should endeavour to source
maize from the region first, before resorting to importation from
outside the region.
Cotton/Textiles
17
Decisions
84.
Council decided that:
(i)
Member States should participate in the development of a regional
framework and strategy on cotton/textiles leading to the definition
of a Regional Trade Policy Platform and Value Chain for Cotton
and Textiles;
(ii)
Member States should participate in the forthcoming regional
stakeholder workshop planned for early 2005 and ensure
adequate participation of public and private sector stakeholders
from respective countries;
(iii)
Member States should support the establishment of private sectorled national level industry associations which would form the basis
of a regional level industry linkages and networks; and
(iv)
Member States should put in place institutional and regulatory
frameworks which should be characterised by public-private sector
partnerships.
Dairy
Decisions
85.
Council urged member States to:
(i)
support the establishment of private sector-led national level
industry associations in their individual countries which would form
the basis of regional level industry linkages and networks and to
note the establishment of the proposed Regional Diary Trade
Association and give it the necessary support; and
(ii)
to put in place viable institutional and regulatory frameworks to
promote the dairy industry, which should be characterised by
public-private sector partnerships.
Coffee
Decision
86.
Council noted as follows:
(i)
Council further noted the progress in the promotion of the region’s
speciality coffee on the international market particularly the US;
(ii)
Council urged member States to attend and participate in the
forthcoming 2nd African Fine Coffee Conference and Exhibition to
be held in Livingstone, Zambia, on March 3-6, 2005.
Seed Sector
Decision
18
87.
Council urged Member States to facilitate the rationalisation and
harmonisation of seed policies, laws, rules and procedures.
(iii)
Agricultural Subsidies and Domestic Support Issues under the WTO
Agreement and the Economic Partnership Agreement (EPA)
Decisions
88.
Council decided that:
(i)
ESA countries need to adopt sector-specific strategic positions as
both during the WTO and EU negotiation they negotiate
agricultural issues within the WTO and the EU. The Cotton
Initiative approach is a good lead which may be extended to other
commodities. Producers of coffee should be encouraged to take a
similar approach;
(ii)
ESA countries should come up with concrete proposals regarding
the cotton sector, especially with regard to financing mechanisms,
administration and disbursing modalities;
(iii)
The proposed fund should not only examine fluctuations in export
earnings but more importantly should seek to make commodity
production more competitive and sustainable;
(iv)
COMESA countries need to explore the supply and value chain to
come up with alternative end uses, and they should also work
towards enhancing intra-African trade and value addition in
commodities as this may be more sustainable than relying on
developed markets alone;
(v)
Member States should endeavour to preserve the benefits
provided by the ACP-EU Sugar Protocol given its strong
developmental component and
(vi)
A Task Force should be set up within the Agricultural Committee
to provide an interface between the Committee on Agriculture and
Committee of Ministers and the existing teams in the WTO and
EPA negotiations.
(e)
Agricultural Exports under the African Growth and Opportunity Act
(AGOA)
89.
Council decided that:
(i)
Member States should welcome the stationing of APHIS experts
at both the South African Trade Hub (Gaborone) and the East
Africa Trade Hub (Kampala) as this is expected to fast-track the
PRA process. Member States are urged to make use of the two
APHIS offices;
(ii)
In order to make the work of APHIS offices easy, there is need for
all AGOA eligible COMESA member States to come up with
National Pest Lists; and
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(iii)
X.
COMESA should set up
a
Regional
testing
laboratory and upgrade of national laboratories to enhance agroexports under AGOA.
CO-OPERATION WITH CO-OPERATING PARTNERS
Decisions
90.
Council decided that:
(i)
That a group of agricultural experts and scientists be constituted
from COMESA member States, to map up the way forward on the
development of the agricultural sector in the COMESA region in
collaboration with co-operating partners, such FAO, NEPAD and
USAID; and
(ii)
That the Secretariat to begin addressing the potential role that
could be played by the youth in agricultural development.
XII.
ECONOMIC AND SOCIAL DEVELOPMENT
(a)
COMESA Fund
Decisions
91.
Council decided that:
(i)
The Fund should have an Adjustment Facility Window for
budgetary support to member States undertaking trade
liberalisation in the context of the Free Trade Area and Customs
Union;
(ii)
Member States which have not yet signed or ratified the Protocol
for the establishment of the COMESA Fund should do so without
any further delay and certainly before June 2005;
(iii)
Upon ratification, member States should pay their contributions to
the Fund;
(iv)
The COMESA Secretariat should seek additional support for the
Adjustment Facility of the COMESA Fund to ensure the availability
of adequate resources to meet the requirements of the member
States;
(v)
the COMESA Secretariat should seek additional support for the
Adjustment Facility of the COMESA Fund to ensure that the Fund
is not divisive; and
(vi)
the Ministers of Finance should consider endorsing the proposal
for member States to contribute to the Fund through IDA funds.
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(b)
Nomination of Judges to the
COMESA Court of Justice
Decision
92.
Council urged Member States that have not submitted nominations to the
Secretary General should do so as soon as possible since the meeting of the
Ministers of Justice and Attorneys-General, which will elect the Judges, will be
held in mid-March 2005.
(c)
Gender and Women in Business Programmes
Decision
93.
Council decided that the Secretariat should develop a programme on
mainstreaming gender in trade and business with special emphasis on
addressing the disadvantages faced by women in business.
(d)
Reports by member States on Status on Implementation of
COMESA Programmes
Decision
94.
Council granted two months extension of the safeguard measures on
wheat by Kenya which expires in March 2005 to the next Council Meeting.
(e)
Draft Consolidated Implementation Action Plan for 2005 (based on
decisions of COMESA Policy Organs)
Decision
95.
The Council approved the Draft Consolidated Implementation Action
Plan for 2005 (Document No. COM/IC/XVIII/5).
(f)
COMESA Leather and Leather Products
Decisions
96.
Council decided that:
(i)
Member States of COMESA/LLPI which have not responded to
the previous decisions once again be urged to pay their
contributions and settle their arrears.
(ii)
Member States be requested to recommit themselves in
supporting LLPI programmes.
(iii)
COMESA/LLPI has continued preparing projects so that member
countries benefit from them and it has also started implementing
some of these projects in member countries. Member states are
requested to participate in these projects and support the
Institutes activities.
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(g)
PTA Bank
Decision
97.
Council decided that COMESA States that have not yet taken up their
membership of the Bank should be called upon to take their membership as
soon as possible.
(h)
PTA Re-insurance Company (ZEP-Re)
Decisions
98.
Council urged that all member States who are either partial participants
or non-participants in the activities of ZEP-Re activities consider joining and or
fully embracing ZEP-Re’s operations in line with the various decisions of the
Council of Ministers and Heads of State and Governments in order that the
Company may fulfil its objectives.
(i)
COMESA Clearing House
Decisions
99.
(j)
Council endorsed the Governors’ decisions that:
(i)
Work on REPSS should proceed in accordance with
recommendations contained under “ Progress Report on the
Establishment of a Regional Payment and Settlement System
(REPSS);
(ii)
The Clearing House continues its assistance to ACE in its efforts
to introduce its services in other member States; and
(iii)
Ongoing collaboration between the Clearing House and ACE in
setting up the “Regional Payment and settlement System REPSS” should be further strengthened.
African Trade Insurance Agency (ATI)
Decisions
100.
Council decided that:
(i)
The member States, through the Liaison Offices and by direct
contact, continue to support the activities of ATI in their countries
by referring business enquiries to it, especially where transactions
involving parastatals; and
(ii)
COMESA member States which have not joined the Agency
should consider doing so, in order to bring the benefits of ATI’s
products to the business communities in their respective countries.
Editorials Notes:
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1.
Regulations,
Directives,
Decisions,
Recommendations and Opinions of Council are issued pursuant to
Article 10 of the COMESA Treaty.
2.
Example for citation: to refer to the Decisions, reference will be
made to “Decision No. 39 in Notice No. 2 of 2004, COMESA Gazette
Vol. 9 No. 2”